If an up- scale jewelry maker sells its products to retailers with the explicit condition that the retailers may not resell the products below a specified price, this is an example of ________ .
A)market division
B)price fixing
C)monopolization
D)resale price maintenance

Question

Quizplus · Accepted Answer

This is an example of resale price maintenance, which is when a manufacturer or distributor sets a minimum price that retailers must sell their product for. This is often done to maintain the perceived value of the product and prevent discounting that could damage the brand's reputation. It is illegal in some countries, including the United States.

If an Up- Scale Jewelry Maker Sells Its Products to Retailers